Can Contractors Switch from ESIC to a Medical Policy for Employees Earning Under 20k?

Dear All,

I have been working on compliance for a facility company. We are the principal employer. We have received the salary breakup for every personnel. In the salary breakup, the ESIC contribution is mentioned as 3.25% for medical allowance. They have deployed 10 personnel at my office. They have withdrawn the deployed personnel names from ESIC and added their names to the medical facility benefit up to Rs. 3.00 lakhs.

Kindly confirm, could they withdraw their names from ESIC and add them to the medical policy when most personnel receive a salary below 20k per month? If their names are added to the medical policy, do we require the ESIC details every month? Kindly confirm.

The answer is a big "NO". This is illegal as long as the employees are covered under ESIC.

S K Bandyopadhyay (Howrah, WB)

USD HR Solutions

If you are the principal employer, then don't allow adding their names. Deployed personnel names should be everywhere in the record, no exceptions.